Riley and Layla are interested in forming a partnership but are concerned about the associated taxes. If the partnership agreement is set such that 80% of earnings go to Riley and 20% go to Layla, which of the following correctly describes how taxes will be paid on the earnings?(1 point)
The partnership itself will pay the tax on total earnings before the earnings are distributed to Riley and Layla.
The partnership itself will pay the tax on each portion of earnings after they have been distributed to Riley and Layla.
Riley and Layla will each pay personal income tax on half of the partnership's total earnings regardless of how the earnings are distributed.
Riley and Layla will each pay personal income tax on the portion of earnings that is theirs. < my answer
Here are ALL of the answers to this quick check
1. limited liability partnership
2. Riley and Layla will each pay personal income tax on the portion of earnings that is theirs.
3. Jonah signs a purchase agreement with a supplier while Jaycee agrees to hire a marketing firm to drum up business.
4. When Jonathan and his friend pool their resources, the business will likely grow faster than it otherwise would; however, Jonathan will lose some of the control over decision-making that he currently enjoys.
5. partners usually draw up legal papers called articles of partnership.
I just took this and got 5/5 hope this helps :)